Why Extended Stay Is Becoming the Preferred Option for Corporate Travel
Corporate travel is evolving. As companies adapt to hybrid work models, tighter budgets, and longer project timelines, one segment of the hospitality industry has quietly surged ahead: extended stay hotels. Once seen as a niche offering, extended stay is now a strategic solution, delivering cost-efficiency, comfort, and consistency for businesses managing travel at scale.
A Shifting Corporate Travel Landscape
Today’s business travelers are no longer spending a single night for a meeting and hopping on the next flight out. Instead, corporate stays are longer, project-based, and often driven by relocation, training, or consulting assignments.
According to Kalibri Labs, extended stay hotels outperformed all other chain scales in occupancy during 2023, reaching nearly 78% occupancy versus 66% for traditional full-service hotels. And that’s not just a COVID-era blip. Post-pandemic, demand has stabilized at elevated levels thanks to business shifts and cost pressures that are here to stay.
Why Corporations Are Choosing Extended Stay
1. Lower Cost, Higher Yield
Extended stay models typically operate with leaner labor models, fewer amenities, and streamlined operations. That means lower room rates for longer stays and significantly reduced turnover and housekeeping costs for operators.
For corporations, this translates to better cost control and predictable spend. The average daily rate (ADR) for extended stay hotels is often 20-30% lower than transient hotel stays of the same brand class, depending on location.
2. Built for Longer Stays
Unlike traditional hotels, extended stay brands like Residence Inn by Marriott and Home2 Suites by Hilton are purpose-built with kitchenettes, larger suites, and workspaces designed for guests staying 5 nights or longer. That creates a more residential feel and allows companies to avoid the cost of corporate apartments or short-term rentals, especially in supply-constrained urban or suburban markets .
3. Access to Loyalty Programs and Corporate Rates
Top extended stay brands are tied into national sales networks and loyalty ecosystems, including Marriott Bonvoy and Hilton Honors. That gives corporate travel managers access to negotiated rates, flexible cancellation policies, and reliable service standards across multiple locations without sacrificing experience for price.
4. Alignment with Hybrid & Remote Work Trends
As remote and hybrid work models rise, many companies are centralizing training, onboarding, and project work at key hubs. Extended stay hotels become hubs for remote teams, offering the convenience of hotel service with the flexibility of a mini-apartment.
Plus, the longer average length of stay (often 5-7 nights) means less administrative churn for travel managers and fewer disruptions for employees.
5. Operational Flexibility and Risk Mitigation
For employers, extended stay hotels also offer more predictable budgeting and fewer hidden fees (no surprise resort charges or expensive dining). In uncertain macroeconomic conditions, that’s a major advantage.
Extended stay hotels also deliver more resilient performance across cycles. During COVID and subsequent volatility, they led the recovery in RevPAR and occupancy. For example, Residence Inn properties maintained higher occupancy and lower volatility than transient hotels between 2020-2022.
Extended Stay is No Longer Niche, It’s Necessary
Whether it’s a consultant on a six-week assignment, a team relocating temporarily, or a tech partner flying in for product integration, today’s corporate traveler needs more than a bed for the night. They need space, consistency, and value, which is exactly what extended stay hotels provide.
As hospitality investors and operators, this trend is more than anecdotal, it’s structural. With long-term demand from business travel, healthcare, insurance, logistics, and relocation services, extended stay is poised to be the bedrock of corporate lodging strategy in the years to come.